A&P Will Sell If the Price is Right
Christian Haub, executive chairman of the board, for the Great Atlantic & Pacific Tea Co., told attendees at the Goldman Sachs retailing conference that the grocer was looking to turnaround A&P on its own, (wait for it) but…
Mr. Haub said A&P had taken a number of steps to make itself more competitive by making improvements in store operations, building on its Fresh store concept and better managing it Food Basic discount store business.
As to the ‘but’ (our word, not Mr. Haub’s), A&P’s leader said, “The world is not necessarily always ideal. I think we have to look at what opportunities are there.”
Mr. Haub, Reuters reports, has said he expects further grocery industry consolidation to take place in the Northeast. The question it now seems is how long before A&P becomes part of that consolidation?
Discussion Questions: Is A&P taking the necessary steps to turn itself around? Do you see further grocery industry consolidation in the Northeast
and Mid-Atlantic regions in the near term? Discuss what you see as some of the more probable merger and/or acquisition scenarios?